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The Indian Roads Congress

E-mail: [email protected]/[email protected]

Founded : December 1934

IRC Website: www.irc.org.inJamnagar House, Shahjahan Road,

New Delhi - 110 011

Tel : Secretary General: +91 (11) 2338 6486

Sectt. : (11) 2338 5395, 2338 7140, 2338 4543, 2338 6274

Fax : +91 (11) 2338 1649

Kama Koti Marg, Sector 6, R.K. Puram

New Delhi - 110 022

Tel : Secretary General : +91 (11) 2618 5303

Sectt. : (11) 2618 5273, 2617 1548, 2671 6778,

2618 5315, 2618 5319, Fax : +91 (11) 2618 3669

No part of this publication may be reproduced by any means without prior written permission from the Secretary General, IRC.

Edited and Published by Shri Vishnu Shankar Prasad on behalf of the Indian Roads Congress (IRC), New Delhi. The responsibility of the

contents and the opinions expressed in Indian Highways is exclusively of the author/s concerned. IRC and the Editor disclaim responsibility

and liability for any statement or opinion, originality of contents and of any copyright violations by the authors. The opinions expressed in the

papers and contents published in the Indian Highways do not necessarily represent the views of the Editor or IRC.

VOLUME 41 NUMBER 12 DECEMBER 2013

CONTENTS ISSN 0376-7256

INDIAN HIGHWAYSA REVIEW OF ROAD AND ROAD TRANSPORT DEVELOPMENT

Page

2-3 From the Editor’s Desk - “Can Roads Be Saviour to Environment”

4 Important Announcement-74th Annual Session to be Held at Guwahati from 18th to 22nd January 2014

5-39 Highlights of International Seminar on “Experience Gained in PPP Projects in Road Sector - the Way Forward” Held at New Delhi on

11-12 November, 2013

40 A Laboratory Study on Short Term and Long Term Ageing of Bitumen Using Modiers

Praveen Kumar, Shambhavi Mishra and Nikhil Saboo

52 Comparative Study of Wet and Dry Blending of Plastic Modied Bituminous Mix Used in Road Pavements

M. Veerendra Kumar, R. Muralidhara and Divya J. Nair

59 The Impact of Road Construction on Depletion of Natural Aggregates and Consequence of Delay in Recycling Pavements - Key Factors

in Sustainable Road Construction

Rajib B. Mallick, Michael Radzicki, Yamini V. Nanagiri and A. Veeraragavan70 A Study on Response Spectrum and Time History Analysis Methods for Seismic Analysis of Prestressed Concrete Bridges

Saadat Zaki Mulla

75 How Safe are Indian Highways at Night

Partha Aich and M.K. Ganguly

93 Behaviour of Piles Under Loads

K.S. Agashe

96 Split Tensile Strength Test of Lime and Cement Stabilized Fly Ash

Kaushik Bandyopadhyay and Sunanda Bhattacharjee

102 Just Published

103-105 Circular Issued by MORT&H

106 Aasam Road Research and Training Institute

107 Tender Notice of NH Circle, Lucknow

108 Tender Notice of NH Circle, Allahabad

109 Tender Notice of NH Circle, Bareilly110 Tender Notice of NH Circle, Lucknow





115 Tender Notice of NH Circle, Chennai

116 Tender Notice of NH Circle, Kanpur

117-118 IRC Membership Form

119-120 74th Annual Session Registration Form

121-122 74th Annual Session Accommodation Form


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2 INDIAN HIGHWAYS, DECEMBER 2013

Dear Readers,

Can roads be considered conducive to environment preservation & conservation? The issue is

debatable but when we see from the aspect of civilization and human inclusive growth, then many

options becomes visible which suggests that roads can be a savior of environment, environment

preservation and protection efforts.

It is commonly debated that the road construction requires lot of natural resources and, therefore,

how they can be considered conducive to environment preservation? Perhaps in the infrastructure

sector, roads sector have maximum possibilities of use of waste material, industrial by-products as

well as municipal waste. The need is to inculcate the concept of achieving higher carbon footprints

in the road construction and operation system. This require dedicated efforts of all the stakeholders

and more importantly the need to carryout dedicated research in a more intensive and extensive

manner. However, over the years the attention towards research in the road sector have taken a

backseat, which now requires a relook. It may not be appropriate to overlook the strength of some

good practices of the past especially on the aspect of principles of alignment xation which use

to be nalized considering the ecological issues. This can be seen from the fact that some of the

national highways are having alignment xed long back (some few centuries ago). This must

be the integral feature of a road sector project preparation especially for the new alignments or

re-alignments.The optimization of land resources in spite of building activities taking place on either side of

the road is yet to be fully integrated and still the concept of by-passes is practiced as a normal

routine. Considering the life cycle cost analysis, it will be always be more environmental friendly

if we consider and implement the concept of multilevel highways/road facilities on the existing

alignment. This may also help in the resulted huge savings in land acquisition and rehabilitation

efforts. Hence economically high returns but doubted by nance minded people normally having

short term perspective/vision.

The issue of material requirement especially the sand, aggregates, etc. do have environmental

concerns but if proper integrated approach is followed by interlinking the various programs ofdifferent Ministries/Departments/Organizations, to a larger extent the environmental concerns

may get translated into a system of environment preservation and conservation. This is a difcult

proposition but not impossible and pessimists will always criticize of such type of concept. However,

this is the need of the hour.

Do road constructions contribute towards climate change? Answer may be both in afrmative as

well as in negative sense. There are number of ways, techniques & technology which may allow

From the Editor’s Desk

CAN ROADS BE SAVIOUR TO ENVIRONMENT


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EDITORIAL

INDIAN HIGHWAYS, DECEMBER 2013 3

road construction activity to transform into climate friendly process. The need is to transform the

narrow mind set to a more positive & pragmatic approach.

Do we really carry out value of return on the investment made in the road sector? And how it has

relevance on the environment conservation? A deeper thought is required to be given as most of thetime the right technical solutions having much higher economic returns are discarded on nancial

considerations. The time has come when the nancial decisions needs to be subjected to technical

audit and the road sector if it adopts the same may give much higher economic returns to the society

and the country.

Do the road accidents have environmental impacts? If we compromise the safety of road users

especially the pedestrians by just deleting the provisions of footpath or pedestrians cross over

facilities, etc. does it have impact on the environment? Why the roads especially in the urban areas

should not be made conducive and safe for the non-motorized vehicles/cyclists as well as pedestrians.

By doing so how much saving we can make in economic terms as well as from environmentalconsiderations. All these issues require a concerted approach as well as synergization of efforts

from all stakeholders.

The need is not to criticize and indulge in blame game but to learn from the failures and bring

in more ecological friendly processes, procedures, techniques and technology to not only reduce

degradation of the eco-system but to create a process of rehabilitation of eco-system that has been

degraded, damaged or destroyed. The road sector can play a pioneering role and in this direction

Indian Roads Congress has already taken some steps and have just published the Guidelines on “Use

of Plastic Waste in Road Construction”. More efforts by the fraternity of Indian Roads Congress

are underway for such process & technologies in the road sector which may ultimately prove to be

a savior sector to the environment among all the infrastructure sectors.

“Do you want to know who you are? Do not ask. Act! Action will delineate and dene you”

“Thomas Jefferson”

Place: New Delhi Vishnu Shankar Prasad

Dated: 21st November, 2013 Secretary General


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ATTENTION INVITED

For any enquiry about the 74th Annual Session like Registration, Membership etc. please address to

Secretary General, (Kind Attn. Shri D. Sam Singh, Under Secretary) Indian Roads Congress,

Kama Koti Marg, Sector-6, R.K. Puram, New Delhi-110 022. Phone + 91 11 26185273, 26185315, 26185319,

E-mail: [email protected], or contact the following ofcers:

Registration Membership Technical Presentation Accommodation and TechnicalExhibition

Shri S.K. Chadha

Under Secretary (I/C)

Phone: + 91 11 2338 7140

E-mail: [email protected],

[email protected]

Shri Mukesh Dubey

Section Ofcer

Phone: + 91 11 2338 7759

E-mail: [email protected]

Shri S.C. Pant

Section Ofcer

Phone: + 91 11 2618 5273

E-mail: [email protected]

Shri Suryya Kr. Baruah

Local Organizing Secretary &

SE, Building Circle -I, Highways,

Guwahati- 641 018 (Assam)

Phone: 0361-266 9873

M.: +91-98640 33268E-mail: [email protected]

On the invitation of Government of Assam, the 74th Annual Session of the Indian Roads Congress will be

held at Guwahati (Assam) from 18th

to 22nd

January, 2014. The Invitation Booklet containing the TentativeProgramme, Registration Form, Accommodation Form etc. is available in our website www.irc.org.in. The Relevant Registration and Accommodation Forms are attached with this edition in the end.

The 74th Annual Session of the Indian Roads Congress is scheduled to be held at Guwahati. It is expected that

more than 3000 Highway Engineers from all over the country and abroad will attend this Session. During the

Annual Session of IRC, there has been a practice for various rms/organizations to make Technical Presentations

on their products/technologies & case studies (with innovative construction methods or technologies or having

special problems requiring out of the box thinking and special solutions). The presenters get an opportunity

to address a large gathering of highway professionals from Private Sector as well as decision makers in the

Govt. Sector. These presentations evoke lively interactions among the participants.

A time slot of about 15 minutes is normally allocated for each Technical Presentation to be made through

Power Point. Time is also given for oor interventions. Audio-visual equipment is made available at thevenue for these Presentations.

During Technical Presentation Session no other meetings will be held parallel so as to ensure maximumattendance during the Technical Presentation Session. The stakeholders are, therefore, requested toparticipate in the event and book the slots at the earliest.

Interested Organizations may write to IRC conveying their willingness for participation and send the topic

of their Technical Presentation by E-mail at [email protected] or through Speed Post alongwith a Demand

Draft for Rs.50,000/- (Rupees Fifty Thousand only) drawn in favour of Secretary General, Indian RoadsCongress, New Delhi latest by 20th December, 2013 so that necessary arrangements can be made by IRC.Requests received after 20th December, 2013 will not be entertained. Since the time slot available is limited,

the interested rms/organizations may reserve the slots at the earliest instead of waiting for the last date.

IMPORTANT ANNOUNCEMENT74th ANNUAL SESSION TO BE HELD AT GUWAHATI

FROM 18TH TO 22ND JANUARY 2014


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HIGHLIGHTS OF INTERNATIONAL SEMINAR

ON

“EXPERIENCE GAINED IN PPP PROJECTS IN

ROAD SECTOR – THE WAY FORWARD” HELD AT NEW DELHI

ON 11-12 NOVEMBER, 2013Welcoming Hon’ble Minister of Road Transport & Highways, Govt. of India Shri Oscar Fernandes Ji

Hon’ble Minister of Road Transport & Highways being

welcomed by Shri C. Kandasamy, President, IRC and

Director General (Road Development) & SS, MoRTH

Hon’ble Minister of Road Transport & Highways being

welcomed by Shri Vishnu Shankar Prasad,

Secretary General, IRC

Hon’ble Minister of Road Transport & Highways meeting with

National & International Delegates

Hon’ble Minister of Road Transport & Highways and other

Dignitaries on the way to Seminar Hall

The Indian Roads Congress (IRC) in association

with the World Road Congress (PIARC) and Govt. of

France organized two days International Seminar on

"Experience Gained in PPP Projects in Road Sector –

The Way Forward" from 11th to 12th November, 2013

at India Habitat Centre, New Delhi. The International

Seminar was attended by more than 300 Highway

Sector Engineers/Professionals representing various

facets of road sector fraternity all over the globe as

well as from Central/State Govt. Departments, PSUs,

Private Sector Orgnizations, Academic Institutes,

Banking and Financing Institutes, Legal Firms, etc.

and also from multilateral orgnization like World

Bank, Asian Development Bank, JICA, etc.


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Shri B.K.Chaturvedi Ji, Member (Power Energy & Transport),

Planning Commission, Govt. of India being welcomed by

Shri Vishnu Shankar Prasad, Secretary General, IRC

Shri T.K.A. Nair Ji, Advisor to Hon'ble Prime Minister of India

being welcomed by Shri Vishnu Shankar Prasad,


His Excellency Shri Francois Richier Ji, Ambassador of Govt. of

France to India being welcomed by Shri Vishnu Shankar Prasad,


Hon’ble Minister of Road Transport & Highways, Govt. of India,

Shri Oscar Fernandes Ji with Shri B.K.Chaturvedi Ji and

Shri Vishnu Shankar Prasad

Shri Gajendra Haldea Ji, Advisor to Deputy Chairman

(Infrastructure), Planning Commission, Govt. of India being

welcomed by Shri Vishnu Shankar Prasad,


Shri Arvind Mayaram Ji, Secretary, Department of Economic

Affairs, Ministry of Finance, Govt. of India being welcomed by



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Inaugural Function

Shri Oscar Fernandes Ji, Hon’ble Minister of Road Transport & Highways inaugurated the International Seminar

by lighting the traditional lamp.

Lighting of Traditional Lamp during the International Seminar

Other dignitaries, Shri Arvind Mayaram, Secretary,

Department of Economic Affairs, Ministry of Finance,

Govt. of India; His Excellency Shri Francois Richier,

Ambassador of Govt. of France; Lt. Gen. A.T. Parnaik,

Director General (Border Roads); Shri C. Kandasamy,

Director General (Road Development) & SS, Ministry

of Road Transport & Highways, President of IRC,

Shri Gerardo L Gavilanes Gineres, Chairman of the

Technical Committee, PIARC; Shri P.N. Jain, Past

President, IRC; Shri Vishnu Shankar Prasad, Secretary

General, IRC and S/Shri K.K.Y. Mahindrakar and

Shri Swatantra Kumar Vice-Presidents of IRC also

graced the occasion.


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Hon’ble Minister of Road Transport & Highways, Shri Oscar Fernandes Ji being welcomed in traditional manner with Shawl by

President IRC, Shri C. Kandasamy, DG (RD) & SS, MoRTH

Some Glimpses of Inaugural Function

Shri Arvind Mayaram, Secretary, Department of Economic

Affairs, Ministry of Finance, Govt. of India being welcomed in

traditional manner with Shawl by President IRC

Shri C. Kandasamy, DG(RD)&SS, MoRTH

His Excellency Shri Francois Richier, Ambassador of Govt.

of France to India being welcomed in traditional manner with

Shawl by President IRC, Shri C. Kandasamy, DG(RD) & SS,

Shri Gerardo L. Gavilanes Gineres, Chairman, Technical

Committee of PIARC being welcomed in traditional manner with

Shawl by President IRC, Shri C. Kandasamy,

DG (RD) & SS, MoRTH

Lt. Gen. A.T. Parnaik, Director General (Border Roads) being

welcomed in traditional manner with Shawl by Shri P.N. Jain,

Immediate Past President of IRC


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Shri C. Kandasamy, President, IRC and DG (RD) & SS, MoRTH

being welcomed in traditional manner with Shawl by

Shri P.N. Jain, Immediate Past President of IRC

Shri P.N. Jain, Immediate Past President of IRC being welcomed

in traditional manner with Shawl by Shri Vishnu Shankar Prasad,


Shri K.K.Y. Mahindrakar, Vice President, IRC being welcomed

in traditional manner with Shawl by Shri Vishnu Shankar Prasad,

Secretary General IRC

Shri Swatantra Kumar, Vice President, IRC being welcomed in

traditional manner with Shawl by Shri Vishnu Shankar Prasad,

Secretary General IRC

A view of the dais during Inaugural Function


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Address by Shri Oscar Fernandes Ji Hon’ble Minister of Road Transport & Highways, Govt. of India

Shri Oscar Fernandes Ji, Hon’ble Minister of Road Transport &

Highways delivering Inaugural Address

“Distinguished Dignitaries, Delegates from India

& Abroad, Invitees, Guest & Friends from the

Media

It is a matter of great pleasure to be amongst the galaxy

of experts gathered from all over the world on the

occasion of this International Seminar “ExperienceGained in PPP Project in Road Sector – The Way

Forward” being organized jointly by the Indian Roads

Congress (IRC), Government of France & World

Road Association (PIARC). As you all know road

infrastructure contributes not only to the economic

growth of the nation but also help in poverty alleviation

and generation of employment. It is, therefore

necessary for the Highway Engineers to provide world

class roads to our Citizens, facilitating their access to

education, health and well-being, within the context

of sustainable development. UPA Government has

given a thrust to all areas of infrastructure in the

country. It is no more a secret that the highway sector

in the country is witnessing a signicant increase in

activities, in recent years. The Government has made

substantial efforts to tackle the road and shortcomings

of highways sector and to reform its transport

institutions. Perhaps India is the one country where

private sector nancing is taking place on a big way in

the shape of Public Private Parternship (PPP) Projects.

Government is continuously making efforts to create aconducive environment to channelized private sector

nancing.

With the growing road construction industry,

environmental burdens are not far behind because of

the use of resources, the emission of pollutants and

global warming, which affect society at large. Roads

have signicant impacts on both nearby communities

and the natural environment. New roads bring

development to previously underdeveloped areas,

sometimes causing signicant effects on sensitiveenvironments and the lifestyles of indigenous

people. Our UPA Government is committed to an all-

round development of road network in the country.

Strategically, adding lanes to existing highway and

upgrading existing roads in initial phase will reduce

greenhouse gas emissions by easing congestion. This

strategy is paying by reducing the amount of fuel that

vehicles waste in stop-and-go trafc, leading to lower

releases of greenhouse gases from vehicles. India is

soon going to have one of the world’s most extensive National highway networks through various phases of

the National Highways Development Project planned

by the Government.

The one area of concern to which I would like to draw

the attention of all the Experts is the conservation of

the material. There is a need to save scarce physical

resource like aggregates, sand, earth, cement, bitumen,


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etc. looking to huge programme of construction of

highways in the country. Construction of roads require

huge amount of soil and a great part of it is drawn

from fertile top soil suitable for agriculture purposes.

Here I feel that we need a convergence of various

efforts. To my mind it is not our department alone

should take up this task, we should have conversions

with Ministry of Railways, Ministry of Rural

Development where we have extensive programme

to provide employment to our people - hundred days

guaranteed employment in the country for every

household. Their main task is to create water bodies.

Whereas, in another government department of water

resources, we are planning to build 10,000 water

bodies, and spending money to create water bodies.We in the Ministry of Road Transport and Highways

are digging out earth for use in road building. Here

I say why don’t we utilize that soil dug for creating

water bodies. We will be conserving rather than

we spending money and wasting our resources. Let

us interlink various departments - Water Resource

Ministry should be one, Ministry of Agriculture and

Ministry of Irrigation can also be associated. One of

our main concerns is to nd money to maintain the

roads. What I say is along the highways we have

plenty of land where we plant saplings & make them

grow into trees. Somebody had planted a tree & we are

eating the fruits. Why don’t we plant tree and leave

them there till they will grow up. After twenty, thirty,

forty, fty years you cut them and use that income for

maintaining roads. Let us have thinking on these lines

so that, we not only draw from nature but we add to

the wealth of the nature.

On the other hand, we have problem of the disposal

& storage of industrial waste like y-ash, copper slag,

marble slurry, etc. We should make sincere efforts

in utilizing these waste materials in construction of

roads through complete/partial replacement for sub-

grade, embankment construction to conserve the top

soil suitable for cultivation. Stabilization by use of

chemical, enzymes and modiers should be attempted

to utilize the otherwise unsuitable soil. Our research

based activity should be conducted in such a manner

that there is proper integration and inter-linkages

between laboratory research and eld requirements/

implementations. I would like to give the slogan “eld

to lab & lab to eld” and the private entrepreneurs

should not feel hesitate in associating and collaboratingwith the government institutions to carry out people

oriented research activities in the road sector.

We are developing roads as a National asset at a huge

cost. These assets need to be preserved qualitatively

through asset management initiatives. We need to

work out appropriate maintenance strategies keeping

in view the available budget and the required demand.

This concept is having high relevance in the big ticket

long term projects of PPP segment. It also opens up

opportunity for usage of new materials, techniques& technologies and I urge upon the Consultants,

Concessionaires as well as executing agencies

including ofcers of the government to develop suitable

mechanism for adoption of the best on continuous

basis. The system should be exible enough for quick

adoption of the same but rigid enough to identify and

quantify the end product result/quality.

As it happens, over a period of time some

apprehensions gets developed about the suitability of

a system, which may be due to changed conditionsand scenarios or may be due to changed aspirations

of users/stakeholders. This is also true to PPP road

projects and the government is taking appropriate

measures to address those issues. In this year budget,

government have already announced setting up

a regulatory mechanism on which work is going

on besides the issues of debt management/debt

renancing, institutional strengthening, restructuring

of projects, revision of MCA, etc. are being examined

and being regularity reviewed and revised. I am

happy that this International Seminar is taking place

at the most appropriate time and I compliment the

organizers especially the Indian Roads Congress for

this endeavor.

We are also planning for constructing green eld

expressways and I am told that Indian Roads

Congress have developed a Manual in a record time

of nine months for Specications and Standards


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for Expressways which will be form the part of the

contract agreement. I am told it is going to be released

today. My special compliments for the same.

I am sure during the course of 2 days program highly

useful and meaningful discussion & deliberations will

be carried out by the experts which have come from

different parts of the world and different stakeholders.

I am sure the sharing of experience, expertise and

wisdom by the stalwarts in the road sector will lead to

new workable suggestions & recommendations. I am

eagerly awaiting the same.

I wish the International Seminar all the success.

Jai Hind”

Address by Shri Arvind Mayaram, Secretary,Department of Economic Affairs, Ministry of

Finance, Govt. of India

Shri Arvind Mayaram, Secretary, Department of Economic

Affairs, Ministry of Finance, Govt. of India, delivering address

“Hon’ble Minister for Road Transport & Highways,

Ladies and Gentlemen, Public Private Partnership

is here to stay. We have now the largest program in

all the sectors combined and road have always in the

forefront. I am going to speak very quickly only at three

important issues which I think will be discussed during

the deliberations in the Seminar. First important fact is

that we started PPP and we have not envisaged at that

point of time the integration of World economy and

Indian economy. The turmoil in the global economy

is being felt in India. Now we recognized that there

is a dynamic environment for PPP sector and this

needs to be recognized. There is a need for openness

and transparency in the contracts and concession

agreements. Once you have signed the contracts,

can you open it again without attracting criticism or

without attracting adverse attention? There is alwaysan issue of moral hazard. Therefore, it is necessary

to revisit the concession agreement keeping in view

the stressed PPP projects without failing into the

trap of moral hazard. How best we can address these

important issues keeping in view the sovereign and

the Concessionaire liability in a transparent manner.

The need is to develop a transparent framework for a

negotiable determination of the relief that can be given

to the stressed projects. In this context I am happy that

Ministry of Road Transport & Highways is nalizing a

framework for a road regulator who I believe in future

will act as an Independent arbitrator to determine

where the responsibility for stressed projects lies. The

other issue which I think is important for us in our

deliberations is developing private sector capabilities.

We have now realized that those who have come into

the PPP projects concession period of 25-30 years

do not have the capability of running concession for

such long period. They are having core competence

in the construction only and once they have done

construction, they want to move out of the same. Sowe require the facilitating process of allowing them to

take out their equity stake and simultaneously we need

to develop the management companies seen in some of

the foreign countries like USA & France. The facility

management company in France take over the project

and operate & managed for next 20 to 25 years. We are

looking at important aspect of creating infrastructure

nance & management towards companies which will

step in after the PPP facility is successfully constructed

and then get new investors to manage the facilitiesduring the operation & maintenance period. Lastly, I

would like to speak which is about problem of getting

long term nancing and transfer of debt. You might

have read in the newspapers how the banks in India

are engaged in stretching the loan period to say 10 to

15 years. The infrastructure debt funds will make the

projects more viable without attracting the regulatory

penalty while reconstructing the debt/loan of the


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Concessionaires. This has been a major problem of

the Concessionaires and the Industry. I hope we will

be able to move in this direction and create framework

for long term nancing. Thank you very much”

Special Address by His Excellency Shri Francois

Richier, Ambassador of Govt. of France to India

His Excellency Shri Francois Richier, Ambassador of Govt. of

France to India delivering address

"Hon’ble Minister for Road Transport and Highways

Shri Oscar Fernandes, Shri Arvind Mayaram,

Secretary, Deptt. of Econimics Affairs, Ministry of

Finance, dignitaries from Indian Roads Congress,

distinguish delegates, ladies and gentlemen, I am very

happy to be here in the Inauguration of this Seminar.

It ts very well in the direction which were given few

month ago on the occasion of State visit of French

President Mr. Francois Hollande to India in February.

During this visit, of course, he highlighted strategic

pillars of Indo-French partnership in nuclear, defence,

tourism, space and others, but he also highlighted the

necessity for India to join hands in developing the

economic partnership and today I think we are on the

right track with 750 French companies present with

18 Billion stock of Investments which shows thecondence we have in France in the future and the

growth of India as major economic partner in the World.

This has also of course, in this different dimensions

and one of course is infrastructure development with

urban or others and is denitely to keep priority of this

economic partnership that we are developing. There

is several reasons for that, the rst one is that because

we have all these investments and we are keen to see

infrastructure developing in India because we need

them good for these companies which are currently

beneting from 2.5 lakh Indian skilled personnel. And

we need also across the board strong India with stronginfrastructures and strong stand in the international

community. The latest bi-lateral development between

France and India is technological partnership and

agship of that was recent India-France technology

summit which took place in Delhi and highlighted

number of sectors in which we nd a great common

interest into joining hands and sharing technologies

for the betterment of two countries. And here also

in infrastructure component, I am sure the different

companies present here which all have very cutting

edge technology, are ready to contribute to Indian

growth and sharing those particular technology. In

this context the PPP model that we are going to look

into today is certainly the way forward. From the tests

some time before, we reached the conclusion that

we have best of law on PPP model in this sector. If

I recollect correctly in 2004 less than ten years ago,

since then it has developed quite well and there was

some good reason for that simply because when you

have such a growing demand, expectations are from

the people to have good roads. When you have suchdifculties to nance them. We found it absolutely

necessary to develop that model and I would like to

add other element from smaller countries other than

India, which we look at the grow question in Europe.

We have like most of the growth in India is generated

by the domestic consumption, therefore, I think this

seminar is very timely. I mention the French companies

some of them are present here. I have a list, before

I read the list, I hope I don’t forget anybody that is

Sistha Engeineering, Facenemania Gohebja NAPC inconstruction, Hindustan Colas in Bitumen equipment

supply & construction and Quasi group in waterways

constructions, I think they all are ready to participate

in competition in India to build roads. As many other

companies present in India they have some concern

and legitimate once which could be very well in the

future may become hurdles if not addressed now in

the development of infrastructure in India. I am very


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happy that this International Seminar will contribute

to nd solutions and few good reections, new ideas

and innovative proposals to x these concerns and I

am sure that we have great future together.

Thank you very much".

Address by Shri C. Kandasamy, President,

Indian Roads Congress and Director General (RD)

& Special Secretary, MoRT&H

Shri C. Kandasamy, President, IRC and Director General

(Road Development) & SS, Ministry of Road Transport &

Highways, delivering address

“Distinguished dignitaries, delegates and invitees,

friends from the media, ladies and gentlemen. A very

good morning to you.

As we know, the road sector plays a vital role in the

development of the Nation and the Society. The

demand for rapid development needs the effort

of the government be supplemented with private

participation channelizing and utilizing private sector

efciency. As we all know, Govt. of India has declared

this decade as the decade of innovation for inclusive

growth and the UN has declared this decade, the

decade of action for road safety. The Indian Roads

Congress in its Coimbatore Session in January, 2013

has adopted the resolution that the “Roads be built

not only for the vehicles but for the people, safety

and services”. This shift the focus on the people and

services for inclusive growth and road safety. The

ways and means of achieving these objectives will be

greatly benetted from such Seminars and exchange of

views between experts came from different countries.

I am sure that based on these deliberations innovative

ways and means will emerge for inclusive growth &

development in road sector.

Thank You”

Address by Shri Gerardo L. Gavilanes Gineres,

Chairman, Technical Committee of PIARC

Shri Gerardo L Gavilanes Gineres, Chairman of the Technical

Committee, PIARC (TC-2.1- Financing) delivering address

“Excellencys, Ladies and Gentlemen, I welcome to

you all to this International Seminar “Experience

gained in PPP Project in Road Sector – The Way

Forward” organized by the Indian Roads Congress.On behalf of PIARC International, Secretary General

I would like to give you a few words about what

PIARC is. Most of you already know it but Some

of you might not know. The Worlds Road Association

commonly known as PIARC, is a non-political non-

protable organization, that was established in 1909.

So it’s a long history in its back of PIARC. It is known

as PIARC because PIARC stands for “Permanent

International Association of Road Congresses” and

was namely association is to have between 1909

and 1995. Now the name changed and is known as

World Roads Association but for a customary word it

is still known as PIARC. The mission of PIARC is to

organize International forums as this and to disseminate

best practices – promote efcient tools for decision

makers and giving special emphasis for European

countries and countries with economic internships. In

this respect there are already 118 members from all


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over the world, 31 in Asia, 32 in Africa, 33 in Europe

and 22 in America. 37 countries are participating in

the International Committees to PIARC, Committees

which are established in every country to promote

working of PIARC. The work of PIARC is established

every four years period depending on certain things

that have been selected before. For this period which is

already in 2012-2015, there are for statutory things-

management of performance, efcient mobility, safety

in road infrastructure, etc. There are 18 technical

committees and 2 task forces. Apart from them, there

is a permanent committee on terminology which

is something that we found useful because most

of the countries are having different ways for thesame things, the work is to unify and come with a

uniform terminology which works of every one . The

Committee we belong to is committee 1.2 which is for

nancing and management performance. This is one

of the issues & important aspects of PPP roads now

a days, where to nd money to do the things better,

provide the better service to citizens. Our work mainly

consists of studying in different strategy of nancing,

different approaches, different ways, PPP tradition

of procurement, etc. and nally at the end of this 4

years period, we will be able to produce technical

report that will be useful for everyone who wants to

do anything about the world roads nance. To give

the honoraria to the proforma cycle 2008-11, there

were 56 technical reports produced by the different

technical committees. All of them are available to

you all in www.piarc.org, which is a web page for

PIARC. You can nd most of their services available

on knowledge base, virtual library, terminologyinformation about the association, if you want to have

more details about it. The next World Roads Congress

will take place in Seoul in 2015. I would like to nish

this introduction with special thanks to Indian Roads

Congress for organizing this PPP seminar which I

think will be useful for everyone. After this Seminar

which is of two days duration’ – our committees will

take advantage of the occasion and will meet for

another two days. Thank you”


delivering welcome address

Shri P.N. Jain, Immediate Past President, IRC

delivering vote of thanks

Vote of Thanks by Shri P.N. Jain, Immediate Past

President, IRC

“Good morning every body”. Hon’ble Minister of

Road Transport and Highways Shri Oscar Fernandes

Ji, all other dignitaries on the dais, off the dais,

distinguished delegates from India and Abroad,

invitees, guests and friends from the media, On

behalf of the Indian Roads Congress it is my proud

privilege to propose vote of thanks on the occasion

of inaugural function of International Seminar on

“Experience Gained in PPP Projects in Road Sector


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– The Way Forward”. We are feeling blessed to

have our Hon’ble Minister of Road Transport and

Highways with us today who has given his valuable

time from his extremely busy schedule and for giving

guidance to all of us. Today road sector and IRC have

attained greater heights, we would like to request

you for giving continuous support to IRC fraternity

as has been done in the past. I on behalf of Indian

Roads Congress thankful to the Secretary, Department

of Economic Affair Shri Arvind Mayaramji for his

thought provoking address and sharing his experience,

I express sincere thanks for his kind presence. I

express my sincere thanks to the Ambassador of the

Govt. of France to India his Excellency Shri FrancoisRicher for his illuminating address and making

possible to grace this International event in spite of

other engagements, I express my sincere thanks to the

Director General (RD) & SS, MoRT&H and President,

IRC Shri C Kandasamy Ji for his able guidance in

organizing this International Seminar with all his

support, I express my sincere thanks to Lt. General

Shri A.T. Parnaik Ji Director General, Border Roads

for gracing this event and his support to the Indian

Roads Congress, I also express my sincere thankson behalf of Indian Roads Congress to Shri Girardo

Gavilanes Gineres and the entire fraternity of PIARC

who has made this event memorable and we are sure

to have very fruitful cooperation in the years to come.

I express my sincere thanks to the Vice President of

Indian Roads Congress Shri K.K.Y. Mahindrakar and

Shri Swantatra Kumar for gracing this inaugural

function and the cooperation in organizing this event.

My gratitude to this August gathering of eminent

scholars, professional, invitees, guests and all the

participants for giving us this privilege through

their graceful presence on this memorable event.

I sincerely thanks to our guests and delegates from

foreign countries who have accepted the invitation

and have come all the way to India today. I am

highly appreciative of the untiring efforts of technical

and managerial skills of IRC Secretariat under the

leadership of Secretary General Shri Vishnu Shankar

Prasad Ji, I extend my gratitude and special thanks

to him. I also thanks the sponsors and advertisers in

supporting this IRC event, I would like to express my

gratitude to the Press and Media for being with us on

this occasion and I hope they will adequately cover the

deliberations of this apex think tank of the road sector.

In the end again I extend my heartiest gratitude to the

dignitaries on the dais and off the dais, well wishers

and all who have come here from different parts of the

world for supporting and boosting the moral of IRC.JAI HIND

Thank You”

Release of IRC Publications:

Shri Oscar Fernandes Ji, Hon’ble Minister of Road

Transport & Highways released following ve

important IRC documents:

i) IRC:SP:99-2013 “Manual of Specications and

Standards for Expressways”

ii) First Revision of IRC:SP:87-2013 of “Manual of

Specications and Standards for Six Laning of

Highways through Public Private Partnership”

iii) IRC:SP:98-2013 “Guidelines for the use of

Waste Plastic in Hot Bituminous Mixes (Dry

Process) in Wearing Courses”

iv) First Revision of IRC:107-2013 “Specication

for Bitumen Mastic Wearing Courses”

v) Souvenir for International Seminar on

“Experience Gained in PPP Projects in Road

Sector- the Way Forward” containing technical

presentations delivered by experts during

Seminar


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Shri Oscar Fernandes Ji, Hon’ble Minister of RT&H, Govt. of India releasing Souvenir of International Seminar on

“Experience Gained in PPP Projects in Road Sector- the Way Forward”

Release of IRC:SP:99-2013 Manual of Specications and

Standards for Expressways by Hon'ble Minister of RT&H

This Manual has been prepared in a record time of 9 months.

First copy of IRC: SP: 99-2013 being presented to

Shri C. Kandasmy, DG (RD) & SS, MoRTH


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Release of First Revision of IRC:SP:87-2013

“Manual of Specications and Standards for Six Laning of

Highways through Public Private Partnership”

by Hon’ble Minster of RT&H

Release of IRC: SP: 98-2013 “Guidelines for the use of Waste

Plastic in Hot Bituminous Mixes (Dry Process) in Wearing

Courses” by Hon’ble Minister of RT&H

First copy of IRC: SP: 98-2013 being presented to

His Excellency Shri Francois Richier, Ambassador of

Govt. of France to India

First Copy of First Revision of IRC:SP:87-2013 being presented

to Lt. Gen A.T. Parnaik, SM, VSM, Director General

Border Roads

Release of First Revision of IRC:107-2013 “Specication for

Bitumen Mastic Wearing Courses” by Hon'ble Minister of RT&H

First copy of First Revision of IRC:107-2013 being presented

to Shri Gerardo L. Gavilanes Gineres, Chairman, Technical

Committee of PIARC


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Glimpses of Some lighter moments

View of Audience during Inaugural Functions Another view of Audience during Inaugural Function

Technical Sessions :

After the inaugural function Technical Session-1

‘Overview in Developing and Managing Road

Infrastructure in India and Other Countries’ was

Chaired by Shri B.K. Chaturvedi, Member (Power

Energy & Transport), Planning Commission, Govt.

of India and Co-chaired by Shri D.P. Gupta, Member, National Transport & Development Committee &

Former DG (RD), MORTH.

Chairman in his opening remark said that

“Distinguished panellists, invitees, the Session

deals with Overview in developing and managing

road infrastructure in India and other countries,

here presented in different areas for giving good

point of view. Let me highlight three areas which

form important components of this strategy. The

rst and the foremost is that it is being realised that

in all developing countries infrastructure is key to

growth. All the infrastructure, road infrastructure

is very important for us. Both rural roads as well as

highways which form the arteries for movement of

goods, these are very critical. While rural roads thereis no way, states have to spent their own money. It is

being realised that we cannot spent large amount of

resources on developing the arteries, the highway, from

the State exchequer. And therefore, we must involve

for private players. These private players have to be

involved not only in terms of construction but also

in terms of their nance participation. So the private


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sector participation comes both in terms of nancing

and in terms of construction. We have tried two major

model of nancing in India. The rst is being public

private partnership based on the BOT Model and the

other public private partnership based on the Annuitymodel. We have other models like what is known as the

engineering construction model but there we need the

Govt. resources which are used and not the resources

of the private players. So practically, a large number

of states now are going to adopt this model because

it is being realised that in this way they are able to

develop faster.

The second component of this strategy has been

levying of toll in most of these roads where the

trafc can bear. So there is a whole body of expertswhich have developed these experts deal with the

various legal terms. We have RFQ, RFP documents

and the Model Concession Agreements and there are

questions being raised in terms of model concession

agreement what will apply and what will not apply,

what is appropriate and what is not appropriate. So

there is a whole body of literature now coming up in

this form. Developing countries have realised that

it is important that concession agreement are of the

best standards and really transparent and fair. Risk

allocation is appropriate. Suitable to the govt. as well

as to the developer. And this way only they will take a

good response. So, therefore, the second point I would

like to say is that there is a whole body of literature

coming up now and there are issues which are seen

during the course of this conference on public private

partnership, the model concession agreements, various

terms of it, the RFP & the RFQ. The terms for qualifying

rms should have tough standards, in case we have

tough standards, no domestic rms, comes, with the

results that the domestic capacity building does nottake place. In case we have very loose standards, then

international rms are not interested. You don’t get

any experience of international construction industry

with the result that you don’t really improve methods

in this regards. There are various types of issues which

need to be seen. This is the second set of issues which

is important for this development.

The third set of issues is the question that as the road

is get made, what about its maintenance and what

about during the operation period. The construction

agreement, how do we go about and for that whole

body of literature has come. We have tried what isknown as operation maintenance contracts and their

again it has been experienced that you can bid them

separately and these are persons who have experienced

in this. So, today the development of the road sector,

which are used to be simple Govt. funded is now more

be on different pattern. The pattern is that the Govt.

wants more private nancing. And for that various

models are being developed. But most of them are

model based on PPP. Govt. also then has to take care

of many of the issues as this model comes because

often people bid in order to grab contracts, sometimes

they bid very aggressively. For the time, things have

changed. How do we negotiate and renegotiate such

contracts, is another question which is now being

raised and become very important particularly in

the context of India. Recently, we nd that a large

number of contracts are such which are not getting

implemented because the developers are nding

difculties in terms and conditions. In some cases, the

situations which they had expected have changed and

economy has slowed down and therefore they cannotimplement and in other cases where they say it can be

implemented the environmental and other clearances

are yet to be given.

There are other sets of issues as you will see relating

to implementing the contracts. What is the Govt’s

responsibility in this regard, in respect of providing

land and providing environmental clearances and

how far should this go before we award this contract.

Issues which we have various points of view. I noticed

that we have very good list of presenters who willgive different points of view. I am sure that during

the course of the deliberations here today, they will

come forward and give their ideas and suggestions on

how some of these issues need to be tackled and how

if there are another related issues which need to be

addressed so that this process of development of road

which is so critical for the development of the economy,


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becomes very vital, very vibrant and succeeds and if it

succeeds to that extent then India’s growth will have

very positive impact on the road model. With these

opening words and highlighting some of the issues, I

would like to invite the speakers”

During this session following four very lucurative and

informative presentations were made by presenters of

India and Abroad:

i) Overview of Road Infrastructure

Development – World Bank Perspective by

Shri Ben Eijbergen, Lead Transport Specialist

& India Infrastructure Coordinator, World

Bank & Shri Arnab Bandopadhyay, Transport

Specialist, World Bank ii) Overview of Road Infrastructure Development

in India by Shri C. Kandasamy, Director General

(Road Development) & Special Secretary to the

Govt. of India & President, IRC

iii) Private Sector view on Operating Roads in

India by Shri Geoffrey GUILLY (France)

iv) Overview in Developing and Managing Road

Infrastructure in Japan- Key Challenges by

Shri Kiyoshi Dachiku, JICA Expert to India

At the end Chairman said that “I want to thank

all the presenters. I would like specially thank

the participants who have been absolutely rstly

discipline and secondly raised very limited number of

questions but very focused one. Three points I would

like to make in respect of this session. First it is quite

clear that Govt. resources alone cannot really meet

the requirements of the road sector. And we have to

therefore, think of some other ways. We have been

thinking of PPP. Mr. Kandasamy gave some very ne

out of the box solutions. How we can use aerospace

on the road to further get more money and make the

project more viable in some of these areas. I think we

need to look at these things. We are also looking at

it in the context of railways is also need to look at

it in context of roads. Because the facts remains that

when roads close down, it has two impacts, rst, the

revenues of govt. of go down and the revenue of Govt.

go down to that extent, the availability of funds for

Govt. projects gets limited. And therefore, availability

to spend Govt. funds on roads and road projects or

any other Govts. spending projects will go down. So,therefore, we have to use other resources. So these are

some out of the box solutions which are required and

we will have to think in that manner.

Second it is important that whatever roads are made,

are they in accordance with the norms and standards

laid down under the agreement. They conrm to it, so

that for the maintenance and for the OMT contract,

it becomes easy. If these are not going in accordance

with that, then to that extent for the OMT contractors,

it is going to be extremely difcult. Besides people willsay that look how can we come in because the roads

are not being built really as per the standards. It is

therefore important that our system in this respect gets

further strengthening and this is an area of weakness I

will say and we need to work in this.

Third, I will say that it is important that we do

undertake R&D and other activities in this sector

continuously today. Roads are getting modernized and

new technologies are coming in and because of which

these are continue to last long. India has a wide variety

of climate. You take north east, you take south, you

take Rajasthan. Such different variety of climate and

it is important that the roads that we make last long. So

therefore, we must continue with the R&D work. And

in this R&D works, we must also take into account

the fact that India has also some difcult areas, which

needs to be appropriately taken care of. And this must

also be shared under the model concession agreement

and the clauses must be so designed. If the clauses

are so designed that you will make roads only in abcmanner and not use any other technology then the

benet of use of new technology for the contractors

goes down. So, to that extent I think we must have

appropriate changes in the clauses. I think this has been

a very useful session as far as I have concern. I would

once again like to thanks the presenters. And come to

the close up of this session with my observations”.


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Glimpses of Technical Session-1

View of the dais during Technical Session-1 ‘Overview in Developing and Managing Road

Infrastructure in India and other Countries’

Shri C. Kandasamy, DG (RD) &SS, and President, IRC

making presentation

Shri Ben Eijbergen, Lead Transport Specialist & India

Infrastructure Coordinator, World Bank making presentation


24/124



Shri Geoffrey GUILLY (France) making presentation

Shri B.K.Chaturvedi, Chairman of Seesion-1 being honored by


A view of dais during Technical Session-1

Shri Kiyoshi Dachiku, JICA Expert making presentation

Technical Session -2

Technical Session-2 ‘PPP Policy Framework’ was

Chaired by Shri G. Sharan, Former DG (RD), MoRTH.

Govt. of India. During this session following four very

lucurative and informative presentations were made

by presenters from India and Abroad:

i) Budget versus User Based Financing - A

Successful Change Over in Austria by

Shri Friedrich SCHWARZ-HERDA (Austria)

ii) Experienc Sharing in Developing PPP Projects

by Shri S.V. Patwardhan, Advisor, Madhucon

Projects Limited

iii) PPP Policy Framework – by Shri Sri Kumar

Tadimalla, South Asia Sustainable Development

Dept., World Bank

iv) Overview of PPP Policy Framework in India

by Shri Rahul Gupta, Superintending Engineer,

MoRTH


25/124




View of Dias during Technical Session-2 “PPP Policy Framework”

Shri Friedrich SCHWARZ-HERDA (Austria) making

presentation

Shri S.V. Patwardhan, Advisor, Madhucon Projects Limited

making presentation


26/124



Shri Sri Kumar Tadimalla, South Asia Sustainable Development

Dept., World Bank making presentation

Shri Rahul Gupta, Superintending Engineer, MoRTH making

presentation

Technical Session -3

Technical Session-3 ‘Overview of Development in

Financing for Road Infrastructure Programme in

different Countries’ was Chaired by Shri Gajendra

Haldea, Advisor to Deputy Chairman (Infrastructure),

Planning Commission, Govt. of India and Co-chaired

by Shri Nirmaljit Singh, Former DG (RD) & SS,

MORTH.

Chairman in his opening remarks said that “When we

began economic liberalization in the early 1990s, itwas thought that we should get private investment,

private participation in roads and the infrastructure

sector like power, airports, ports and so on. So, from

1995 or so we set about in the Govt. of India to invite

private participation. Well it is a long winded road,

time does not permit the detailed explanation but as I

say the rst project was awarded only, rst worthwhile

project, there were some small experiments here and

there like NOIDA Expressway Toll Way and so on but

they were very small and signicantly awed but a

proper exercise was done only in the late nineties and

rst major project was awarded in 2002 which got

completed in 2005. First PPP road project came about

in 2005. So, we have really speaking about 8, 9 or 10

years of experience in PPP Projects in roads. Now of

course this activity has picked up very fast and we

have made a lot of progress. When this whole

framework was being written, I have great privilege

of being in the middle of it and I was writing theModel Concession Agreement myself and it was a

very complicated exercise because there is no

experience in this in India here at that point of time in

a matter like this so, we set about nding out what had

happened in different countries. We studied what had

happened in Canada and in US and several Latin

American countries, in France, in Italy and south east

Asia and so on. And we learned from their strength,

we also learned from their mistakes, we learnt how

many countries had to renegotiate, how some of their projects failed and fell apart mid-way. So, based on all

those learnings we prepared our framework. So, it can

be said that whatever the world had learnt and whatever

literature was available till about say 2000 or 2001

was actually brought out to bear in our framework and

when we started in the early 2000 then we brought

about a framework being working in last decade or so

and during this period we do not know of too many

developments at least I don’t know many developments

having taken place in different countries which are of

a different nature and which give us reason to change

our strategy. Of course there will be learning from our

own experience and also from other countries and

some of our colleagues here on the dais, will inform

us of the learning in their countries based on that we

can take a relook at what we are doing but during the

past six-seven years what we have implemented has

actually led India to the World global rank one.


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According to World Bank India has been the top

recipient of PPP investment in the World for the last 3

or 4 years and we are quite ahead of most other

countries in attracting private investment specially in

highways. The experience with the MCA has beensomewhat mixed not because we have discovered

many problems with the MCA, you can discount part

of it because people may think I am biased in favour

of MCA but as a matter of fact I want to mention to

you that I haven’t come across a serious people which

says these are the four or ve area or these are 5, 10 or

15 clauses which need to be revised or modied or

improved. I haven’t come across that kind of

discussion. Some changes has been made in the

National Highway document but soon after the

changes were made there were some reservations by

the Committee. The Chairman of the Committee who

actually made them that is Mr. Chaturvedi and he

asked for review for more provisions that’s one part

and those changes actually changes the basic substance

of the theory of the MCA. On the other hand there are

about 11 or 12 states which have adopted the MCA

without any change. They have not made the changes

as the Centrtal Govt., the NHAI had made and they

have not reported any problems so far. That is so far as

the report back or feed back as far as MCA is concerned.On the other hand there is quite serious problem, my

perception about the MCA as one of the speaker in the

previous Session pointed out that problem is

implementation and enforcement. I don’t think we

have as yet created the specialization of the capacity

or real mindset that is necessary for successful

implementation of PPP projects . So, I think what has

happened there on one side. We have adopted a fare

and advanced framework taking note of the all that

happened in rest of the world. On the other side whilethis was proceeding and gone quite a lot on the other

side we did not trained our mind, we did not trained

our people, we did not understand the MCA, we did

not change from the old civil engineering practices of

road building to public private participation and

therefore, there have been serious problems in

implementation and enforcement of the MCA so

much. Many other provisions actually are remain on

paper and are in violation. Different types of problems

are rising, so if you do not implement PPP contract

seriously and the way it is mend then you are bound to

have few problems you go along and we have to take

a serious look at that as well. may be you can’timplement some thing. It need simplication we

should look at that. So either, we should modify to

make it more simpler what the stake holders feel or

we should gure out ways how to implement the MCA

more rigorously because one should enter the world of

contracts which is what PPP is. The contract become

sour and you have to follow the terms of the contract,

if you take it lightly, you will have serious untended

consequences. Now, none of these documents should

be regarded as cast in stone, there is going to be

learning, there is going to be hope for improvement,

there is going to be hope for review. As a result of this

belief we have actually started review of the MCA if

that apply to the states, we have not done it for centre,

we have left it to NHAI to decide but the state look up

to Planning Commission for MCA and they follow

MCA without change. We are now in dialogue with

the states that whether we can further improve the

MCA to meet some emerging concerns that we noticed

in the last six or seven years and those of you who are

interested in the MCA as a document. In the theory behind the MCA how it should be improved discovering

the aws, in making improvements. We have organized

the big seminar where we have invited major stake

holders, experts and several people from State

Government to come and talk to us about revise

document, we have circulated revised document

strengthening some of the provision of the MCA to

make them more nanceable and more effective and

those of you who are interested you can either get in

touch with me, send me an email or contact IRC, andthey will let us know and we will be happy to invite

you on 22nd November meeting few days from now

and also give you the revise document. Now so much

for MCA etc. I think the entire business of PPP is quite

an international exercise, there is lot of international

literature, lot of international experience and I presume

the idea of this particular session is to share the

experience and learn from the each other how we can


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do better, incidentally the ADB had commissioned the

economist EIU to do a study on PPP framework and I

am very happy to report to you that they have treated,

and have weighted Indian infrastructure framework

and PPP framework or Model Concession AgreementRFQ, RFP among top in the world just next to UK and

Australia who were much more mature because they

have many many more years of experience but we are

right at the top so far as international rating and

assessment is concerned. There is always more to

learn and always room for improvement that what we

should do. These are some very brief remarks. Time is

short so would not take more of your time and I know

you keen to hear the international participants to gure

out how they are doing and what we can learn fromthem. I am slightly changing the order with the

permission of all the key speakers here. What I

proposed to do to put an Indian experience in the end

and learn the International experience from our guest

rst. My broad understanding is that there are number

of PPP, I mean Toll Roads in Italy so, may I request

Mr. Fabio Pasquali to rst began his presentation on

the Italian experience and what we can learn from

you”

During this session following ve very lucrative and

informative presentations were made by presenters

from India and Abroad:

i) Financing of PPP Road Projects in India by

Shri S.K. Agarwal, Sr. Vice President, SBI

Caps

ii) The funding of Roads and Toll Highway

Network - Japanese Experience by Shri Takaaki

NAMBU, Expectative Managing Director,

Hanshin Expressways Co. Ltd., Japan

iii) Public-Private Partnership in the Road

Transport Sector-New Treads in Italy by

Shri Fabio PasQuali, Head of EconomicAssessment (Italy)

iv) Different PPP Approaches for Indian Roads by

Shri Rik JOOSTEN, The Netherlands

v) “The Australian Experience - Lessons Learned

and New Approaches to Road Financing” by

Shri Richard. A. Lowe, Principal PPP Specialist,

Asian Development Bank (ADB).

View of dais during Technical Session-3 “Overview of Developments in Financing for Road Infrastructure Programme in

different Countries”



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Shri Gajendra Haldea, Advisor to Deputy Chairman

(Infrastructure), Planning Commission making

Opening Remarks

Shri S.K. Gupta, Sr. Vice President, SBI

Caps making presentation

Shri Takaaki NAMBU, Executive Managing Director, Hanshin

Expressways Co. Ltd., Japan making presentation

Shri Fabio PasQuali, Head of Economic Assessment, Italy

making presentation

Shri Rik JOOSTEN, The Netherlands making presentation Shri Richard A. Lowe, PPP Specialist, ADB making presentation


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Technical Session-4 ‘Experience Sharing in

Contractual Model Choices, Analysis, Risk Allocation,

Government Support Mechanisms' was Chaired by

Shri Gajendra Haldea, Advisor to Deputy Chairman

(Infrastructure), Planning Commission, Govt. of India

and Co-chaired by Shri Mahesh Kumar, Engineer-in-

Chief, R&B Department, Haryana PWD.

Opening remarks by Chairman Shri Gajendra Haldea:

“First of all I want to thank the IRC again for giving me

this opportunity to be here and to share experience and

learn from various participants across the world. Now

I believe that in the session yesterday there was some

discussion on the MCA and that probably the kind ofsubject that we are going to discuss today because we

are going to talk about contractual model choices and

that is all about contracts. Before I begin, I want to

congratulate in particular the Secretary General of the

IRC. He has taken a great deal of trouble and initiative

in organizing this Seminar like this. It is much needed

and I would suggest to him to make this an annual

feature because it provides a forum for airing people’s

views and understanding each other’s perspective and

I can see a number of people here, people like Mr. D.P.

Gupta, Mr. S.C. Sharma and of course many others

the some of whom I know and some I did not have the

benet of meeting, who have had a lot of experience.

Mr. Sharan is here, they have a lot of experience of

contracts relating to roads with PPP contracts relating

to highways and I think in the tness of thing it might

be better if we leave more time for oor interaction

because we will then get good avor of the views

across this hall. Because well I agreed that there is lot

of expertise residing here in the panel but there is a lot

of expertise residing on the other side as well. So what

I propose to do is, I will cut down time. I am supposed

to have been allocated ve minutes so I am cutting

them down to 2 or 3 minutes and I will conclude here

and I would urge the panel members to try and nish

in about nine to ten minutes so that when questions

come you can cover the areas which actually concern

or bother many of the participants here. So if that’s

Ok with the presenters then lets begin, let Mr. Rajesh

Rohatgi Sr. Transport Specialist from World Bank,

please make the rst presentation”.

During this session following four very lucrative and



i) Output & Performance Based Road Contract

– An Alternate PPP Model by Shri Rajesh

Rohtagi, Senior Transport Specialist, World

Bank.

ii) Experience Sharing in Contractual Model

Choices: Analysis, Risk Allocation, Government

Support Mechanisms – The French Model by

Ms Anne PLUVINAGE, Project Manager,

Ministry of Ecology, Sustainable Development

and Energy, France.

iii) Contractual Model Analysis from Banks

Perspective by Shri Kamal Verma, CEO, SREI

Infrastructure Finance Limited.

iv) PPP Contract Choices- Examples of

ADB’s Experience with Performance

Based Maintenance Contracts (PBMC) by

Ms. Lise Weidner, Senior PPP Specialist, Asian

Development Bank (ADB)

At the end Chairman said that “I just want to conne

myself to few issues. First I, as in other conferences

noticed that there are lots of issues that people want to

raise about MCAs and its various provisions and how

they can be different. But before I come to the MCAs,

I have to just rst say that why do we need PPPs. Well

across sectors, we nd that where incumbent players

do not welcome PPPs easily. Incumbent players like

cash contracts because there it is in their control, they


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are in control of the asset, that is ne, that is human

nature. If I were you, I have done in the same way.

The problem is that increasingly govt. budgets don’t

have the money, so the choice is between shrinking

your respective sector whether Ports, Airports,

Highways or any other sector or let it be opened and

let the people of India and your own sector beneted

by PPP participation. There are problems with PPPs,

as there are problems with NHAI, we need to resolve

those problems in a constructive manner. Now,

there are lots of issues with MCA. There are MCAs

issues which I am hearing about and quite often

some of them are arising from different stakeholder

perspective. Some of them also arise because they

think that some provisions are not properly written,

some are imbalance because some of them are written

in some other way. Well, in a lighter vein let me tell

you that we have written in number of MCAs and

every MCA I write I lose more friends because when

I started people welcome the exercise. When you

have done, everybody thinks that it looks that 95% is

OK and that the balance 5% is not that is important.

For me these fellows have not understood. They are

rigid and they don’t understand that particular point

as they are not addressed it. So at the end of the day

most people have dissatisfaction about that 5%. The

truth is about that 5%. If that 5% is given to you,

then the other stakeholder who will walk out and if I

give him that 5%, which he is wanted then you will

walk out. MCA is all about balances in equilibrium

and that is why I would reiterate the suggestions to

Secretary General, IRC, please organize free owing brain storming sessions on MCA. What that does is,

that certain stakeholders with their perceptions and

most of them actually balance out because some of

the people are pulling in different direction and they

neutralize and arrive at some balance. It is possible

that the balance is already reected in MCA and it

is also possible the balance needs to be changed or

reviewed. We know that MCA is not cast in stones

but there must be consensus building. We should not

write MCA on the basis of your or my belief because I

believe this MCA was written after lot of deliberation

with stakeholder consultations and after trying to

build, as much consensus as possible, so I leave this

request with IRC. As regard to the long term debt is

concerned, we have set up infrastructure debt funds

which will renance bank loan that provide long

term debt. We hope this initiative taken last year will

stabilize and as it grows we hope to largely resolve

the nancing problem. Some points were made about

lending, etc. by you as well. We had taken it with the

Reserve Bank about six months ago. Earlier the banks

said this is not secured loan, we want this charge or that

charge etc. Now the reserve bank has categorically

said that loan given on the basis of Model Concession

Agreement are secured loans. that problem is really

behind us. There is always this discussion about TPC,

I am not clear about why so many discussions takes

place because it is between the lender engineers and

it is between the NHAI engineers. I don’t see why

they can’t resolve this, why they can’t nd the way of

establishing a correct project cost. There are issues

on both sides some time these costs are not reasonable.

In these cases NHAI need to look at them again. The

need is to have check and balance in place. This is

primarily a cost estimation exercise, which is in the

domain of the engineers and nance experts and it is

not clear to me yet why this issue keeps going on andno efforts are made either in NHAI or Ministry or any

other forum to nd out how to address this problem of

TPC and how to make it reasonable and apt. Hope

the deliberations in this Seminar may show the way

forward”.


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Ms. Lise Weidner, Senior PPP Specialist, ADB

making presentation

Shri Rajesh Rohtagi, Senior Transport Specialist, World Bank

making presentatin

A view of the dais



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Ms Anne PLUVINAGE, Project Manager, Ministry of Ecology,

Sustainable Development and Energy,

France making presentation

Shri Gajendra Haldea being presented memento by


Another view of dais

Shri Kamal Verma, CEO, SREI Infrastructure Finance Limited

making presentation

Technical Session-5

Technical Session-5 ‘Experience Sharing in Tendering

for Road Infrastructure Contracts & Pre-construction

Activities’ was Chaired by Shri V.L. Patankar,Additional Director General, Ministry of Road

Transport and Highways and Co-chaired by

Shri Manoj Kumar, Chief Engineer, R&B Dept.,

Ministry of Road Transport and Highways.

During this session following four very lucrative and



i) Comprehensive Bidding Practices in Japan by

Shri Keita Nakasu, JICA Expert

ii) Tendering Procedure in Austrian PPP Project, A

Negotiation Procedure by Shri VOLKER Rux

(Austria)

iii) Challenges in Pre-construction Activites in PPP

Projects in India by Ms Neha Vyas, World Bank

and Ms Sangeeta Kumari, World Bank.

iv) PPP in Road Development in India- Government

Support Mechanism by Shri Sudhir Hoshing,

CEO, Reliance Infrastructure Ltd.


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A view of the dais

Shri Keita Nakasu, JICA Expert making presentation Shri Volker Rux (Austria) making presentation


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Technical Session-6

Technical Session-6 ‘Legal Aspects for Road

Infrastructure Projects, Including Contract

Management Aspects’ was Chaired by Shri Adesh Jain,

Chairman of I2P2M & Honorary President, PMA andCo-chaired by Shri S.C. Sharma, Former DG (RD) &

SS, Ministry of Road Transport and Highways.

During this session following three very lucrative and



i) Legal Aspects Including From feedback by

Shri EU. Sabine LASSERRE (France)

ii) Coping with Court Sentences – The Case

of Radial Toll Highways in Madrid by

Shri Gerardo L. GAVILANES Gineres (Spain)

iii) User Perceptions & Perspectives for PPP Road

Infrastructure Projects by Shri D.P. Gupta,

Former DG (RD), MORTH & National Expert

on Transport

Ms Neha Vyas, World Bank making presentation

Shri Sudhir Hoshing, CEO, Reliance Infrastructure Ltd. making

presentation

Ms Sangeeta Kumari, World Bank making presentation



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A view of the dais

Ms. EU. Sabine LASSERRE (France) making presentation Shri Gerardo L. GAVILANES Gineres (Spain)

making presentation


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Session: 7-Panel Discussion

Panel Discussion on “Recap on Key Strategies for

Way Forward for PPP Road Projects” was Co-chaired

by Dr. Henri Chua, United Kingdom & Shri C.

Kandasamy, Director General (Road Development) &

Special Secretary, MoRTH. The other panelists were

Shri D.P. Gupta, Former DG (RD), MORTH & National Expert

on Transport making presentation


View of dais during Panel Discussion Session

Shri S.K. Puri, Convenor, G-1 Committee of IRC &

Former DG (RD), MoRTH; Shri Nirmal Jit Singh,

Convenor, G-8 Committee of IRC & Former DG

(RD) & SS, MoRTH Shri B. Seenaiah, MD, BSCPL

Infrastructure Ltd. and Maj. V.C. Verma, Presendent,

National Highway Building Federation.


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Valedictory Session:

The Valedictory Session was Chaired by Shri T.K.A.

Nair, Advisor to Hon'ble Prime Minister of India.

This Session was also graced by Shri C. Kandasamy,

President IRC and DG (RD) & Special Secretary,MoRT&H, Dr. Henri Chua, United Kingdom, Shri

Vishnu Shankar Prasad, Secretary General, IRC,

and Shri Gerardo L. Gavilanes, Chairman Technical

Committee, PIARC.

Shri T.K.A. Nair, in his Valedictory Address said

“Mr. Kandasamy, other colleagues and friends

including distinguished participants who represent

international institutions of other Countries, Well, rst

of all let me begin with a word of apology for not

being able to j

Documents

Indian Highways Vol.41 12 Dec 13